Traders work on the New York Stock Exchange floor on Dec. 18, 2024.
Spencer Platt | Getty Images
The S&P 500 rose modestly Tuesday on Christmas Eve as the benchmark sought to squeeze out back-to-back gains in the holiday week.
The broad market index added 0.2% and the Dow Jones Industrial Average hovered near the flatline. The Nasdaq Composite climbed 0.4%.
American Airlines shares fell about 2% after the carrier briefly grounded all flights in the U.S. due to a technical issue on one of the busiest travel days of the year.
Trading is expected to be thin this week. On Tuesday, the New York Stock Exchange closes early at 1 p.m. ET for Christmas Eve, while the bond market closes at 2 p.m. The market is also closed on Wednesday for Christmas Day.
The stock market began the holiday-shortened week on a positive note, aided by tech names and semiconductor stocks. The S&P 500 rose 0.7% and the Nasdaq Composite closed Monday about 1% higher. The 30-stock Dow also finished up nearly 0.2%.
Frost ahead for the Santa Claus rally?
With few trading days in store, some investors are hoping for a Santa Claus rally to conclude what has already been a strong year for the market. And that’s not completely out of the ordinary. According to the Stock Trader’s Almanac, the S&P 500 has gained 1.3% on average between the last five trading days of the year and the first two in January, dating back to 1969.
But Jay Hatfield of Infrastructure Capital Advisors is calling for a bit of a stall in the market over the coming days. He is sticking with his year-end 2024 S&P 500 target of 6,000, which implies only a 0.4% increase for the broad market index from Monday’s close.
“We might get a Santa Claus rally, but those aren’t that powerful [of] rallies,” the firm’s CEO told CNBC. “We’re neutral on the market.”